How will the US-China trade war impact South Africa?

A trade war is brewing between the world superpowers, USA and China and this could have dire economic consequences, not just for the two countries but globally too.

The possibility of such a war has been in focus after US President Trump announced tariffs on Chinese goods and China retaliated with tariffs on most agricultural imports from the US.

What happens in this regard is a possibility of trade diversion. So even if the US and China are having this battle, trade diversion means what may happen is that many of their market groups will be dumped on other markets to ensure that they don't overconsume or overproduce.

Lebohang Pheko, Senior Research Fellow and Political Economist at Trade Collective

READ: **China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’**

South Africa and other African countries need to look at opportunities we can leverage from either countries at this particular time. Mainly because we need to find our own sense of agencies.

Lebohang Pheko, Senior Research Fellow and Political Economist at Trade Collective

ALSO READ: China hits back. Trade war with US erupts

It's important to remind ourselves that South Africa is a small open economy. Which means even if we are not exporting to the US directly, we may as well be exporting indirectly by sending our primary products which are commodities and raw materials indirectly to the to the US through Europe, India or China.

Professor Adrian Saville, CEO of Cannon Asset Managers and Professor at Gordon Institute of Business Science

Listen to the full interviews here:


Recommended

by NEWSROOM AI
Read More
Gauteng online application for Grade 1 and 8 pupils is officially live

Gauteng online application for Grade 1 and 8 pupils is officially live

Education MEC Panyaza Lesufi urges parents who are struggling with the system to keep trying until they succeed.

 Jacob Zuma back in court today, lawyer plans isiZulu opening statement

Jacob Zuma back in court today, lawyer plans isiZulu opening statement

Tiso Black Star specialist reporter Karyn Maughan discusses the former president's permanent stay of prosecution application.

Egypt Blast: This was an isolated incident and has been contained - Dirco

Egypt Blast: This was an isolated incident and has been contained - Dirco

The spokesperson Ndivhuwo Mabaya says three injured South Africans are stable in hospital and the 25 others are back home.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’

China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’

The Money Show’s Bruce Whitfield interviews Siya Biniza, Political Economist at Political Economy South Africa (PESA).

China hits back. Trade war with US erupts

China hits back. Trade war with US erupts

China, the world’s second largest economy, retaliated against US tariffs on its goods. Refilwe Moloto interviews Donald Mackay.

Popular articles
Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

The account costs R4.95 per month; you get 1GB of free data. Swipe 4 times a month; you get 0.5GB of free data and R50 airtime.

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

The Glamour Boys lost the Nedbank Cup final to underdogs TS Galaxy on Saturday.

 Jacob Zuma back in court today, lawyer plans isiZulu opening statement

Jacob Zuma back in court today, lawyer plans isiZulu opening statement

Tiso Black Star specialist reporter Karyn Maughan discusses the former president's permanent stay of prosecution application.

'Driving licence backlog whittled down to about 30 000 nationally'

'Driving licence backlog whittled down to about 30 000 nationally'

Western Cape Transport MEC, Donald Grant, says there is progress in renewals which stood at about 200 000 two months ago.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

[UPDATE] Kind-hearted listeners ensure murdered security guard receives burial

[UPDATE] Kind-hearted listeners ensure murdered security guard receives burial

Ernest Kanzi's family will take his body back to the Eastern Cape on Thursday thanks to the generosity of Clint Beech and others.

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

A video of a young man kicking actor and former US governor Arnold Schwarzenegger in the back on Saturday in Joburg went viral.